1. Field
Embodiments of the invention relate generally to management of solar energy systems and, in particular, to the generation of solar renewable energy certificates.
2. Discussion of related art.
Renewable Energy Certificates (RECs), which includes Solar Renewable Energy Credits (SRECs), are a form of Renewable Energy Certificate or Green tag utilized to reward the producers of renewable energy. RECs are available in states where a Renewable Portfolio Standard (RPS) exists with a specific allocation for solar energy. SREC programs, for example, provide a means for SRECs to be created on behalf of a solar panel owner and sold to state electric suppliers to meet the solar RPS requirement. Electric suppliers are then required to use the SREC program to show compliance with this part of the State's Renewable Portfolio Standard.
The SREC is separate from the value of the electricity itself and permits the owner or purchaser to claim the benefits of the clean energy production by effectively subsidizing the cost of the installed system. SRECs are designed to provide individuals and corporations with an economic incentive to investing in solar electric systems, which improve the electrical distribution grid. SRECs represent the renewable attributes from a solar facility and are typically bundled in minimum denominations of one megawatt hour of production. The additional income received from selling solar certificates increases the economic value of an investment in renewable energies. Instead of up-front subsidies from the state, solar system owners can recover their investment in the solar system by selling certificates to utilities.
In order to produce SRECs, a solar system must first be certified by state regulatory agencies, usually public service commissions or public utility commissions, and then registered with a trading platform. Once a solar system is certified with the state agency and registered with a trading platform, SRECs can be issued using either an estimate table or actual meter readings by the trading platform - depending upon state regulations. In some cases, smaller installations may be able to use estimates, while actual meter readings are required for large installations. One SREC is created for every megawatt hour of electricity produced from a qualified solar renewable energy generator.
In Pennsylvania, New Jersey, Delaware, Ohio, Maryland and the District of Columbia solar systems are registered with, and SRECs are issued by, PJM Environmental Information Services Generation Attribute Tracking System PJM-EIS GATS. The Western Renewable Energy Generation Information System (WREGIS) is an independent, renewable energy tracking system for the region covered by the Western Electricity Coordinating Council (WECC). WREGIS tracks renewable energy generation from units that register in the system using verifiable data and creates renewable energy certificates (RECs) for this generation. WREGIS Certificates can be used to verify compliance with state and provincial regulatory requirements and in voluntary market programs. PJM-EIS GATS and WREGIS are accreditation entities and ultimately they, or similar organizations, issue RECs.
Therefore, there is a need for solar components that better track power production in order to allow the generation of RECs.